take on the state of the economy. thank you for joining us. have a great night. we will see you tomorrow. lou: good evening. day number two of the national convention is a day of reversals of four democrats. changing weather conditions causes a change of venue for the president's acceptance speech. from 74,000 seat bankamerica stadium instead to the arena seating 20,000. yesterday's they chose to drop god from the official

platform was reborn. now got is part of the democratic platform. there is no longer any more ambiguity about the capital of israel. yesterday's vague drop recognition of jerusalem from their platform after a contentious 24 hours the party leaders could not tolerate controversy anymore and chose to recognize jerusalem as the official capital. but they will continue into the night focusing on the man standing center stage, hearing from bill clinton the last person to balance the federal budget, 16 years ago declared big government but over. and will pledge support for obama.

with us spend more money than any president ever with the largest deficit and largest that ever. largest federal government in our history. we take that up with the author of the amateur, ed klein, and lanny davis what his former boss must accomplish if obama is to be reelected. clinton has been one of his top surrogates and fund-raisers. but tonight he takes on the mantle of champion. >> this is a clear choice. the republican plan is to cut taxes going back to deregulation. president obama has a plan investing in education, job training and it only works

if there is a strong middle-class. that is what happened when i was president. lou: you would think they have been friends throughout , but not so. the same man who told "the new york times" after the debt ceiling debate quote mack i am really trying to help him, but he seems to have lost his narrative narrative" -- " that is tame compared to the language used in the 2008 democratic primary as his of frequent targets in 2007 said we could find someone who is a gifted television commentator and let them run rather than have one less your experience in national politics. >> after the election to divide it seemed to subside

visibly and has since become an advocate for reelection. who could remember when he went off message to praise governor romney? >> no question getting up and going to the office to have the essential functions a man who has been governor passes the qualification end threshold. lou: to 19 it will be in a will few presidents have asked to fill. now moving indoors tomorrow with weather concerns although filling empty chairs could be an important cause. added henry has more. >> as they arrived they said their deeply disappointed they have to move the acceptance speech from

bankamerica stadium to the time warner center leaving thousands of volunteers broken hearted about losing their seats. >> we are hoping. it is disappointing. >> obama's 2.0. >> forget the greek columns with the throng of 80,000 fans and they suggested the cover was cover struggling to fill the seat. >> they did say there were busing people in but they stopped at the charge of lack of enthusiasm. >> kinko's who were planning to come tomorrow night would disagree and are disappointed. but the chance of severe weather is too high. >> also was closed-door

meetings the president is expressing increasing alarm about mitt romney raising $100 million in august to give him a big edge. publicly they say they are now worried. >> the president is ahead zero or tie in every battleground state. >> one way to about enthusiasm is to bring a bill clinton that typically would go to vice president biden. he declared the era of big government was over speaks 24 hours after the national debt reached $16 trillion. >> that this from the bush should ministrations. >> as balloons comedown we get the picture but look into the rafters. originally it would be outdoors they were going to

do fireworks so i'm told they are scrambling because it is too late to order 1,000 balloons -- 10,000 list -- 100,000 once. lou: democratic leaders responded to intense criticism with a revision to the official platform voted on yesterday. reinstating pro-israel language and god is back. hearing that the president personally intervened the new platform requires to third voice vote. it seems clear they did not approve watch this was mayor villaraigosa chairing the meeting.

>> all delegates in favor say i those opposed say no. >> 2/3 voted in the affirmative and the platform has been amended. lou: convention politics or sometimes local politics are dirty of paris. the mayor of los angeles adopting the platform. but clinton will take a stage tonight and my guest says he could do damage to obama. we have author of "the new york times" best-seller book the amateur. at the top for the last 16

weeks? [laughter] start with this speech. language is innocuous. >> dave release parts of the speech but the full text has not been released. we're getting close to the time. lou: i am getting excited. forgive me if i lose focus. >> obama does not know what is in the speech. my guess clinton and higher still writing the speech as we talk. lou: i had the opportunity to see a number of his speeches. i happen to think he is the brightest, most effective extemporaneous speaker in my lifetime. i wouldn't worry about it if

he just says good evening. >> we may have another clint eastwood moment with the ad lib. lou: here we have a of former president being asked to advocate in champion a president who has made government larger than it has ever been. going where no president has gone before. >> he looks at 2012 as the interim election. 2016 is the important election as far as he is concerned, hilary will run. the party since he lost office has moved to the left. in order to create the base he asked to signal he has

moved to the left. lou: how does the democratic party square it up? here you have a president who was a great centrist democrat welfare reform, balanced-budget what they can only dream of. a wife to his left and contemplating a run for the presidency. >> one thing they have in common is they both have been the victim of a right-wing conspiracy. monica lewinsky, rich. >> is hillary. >> he can say at was a great president but we have both

been a victim. lou: will people look for the airsickness bags tonight? [laughter] if we hear about victimhood? >> of course. don't forget the atmosphere on the floor of said democratic convention. you played a clip about god and jerusalem i heard there more people against god. [laughter] lou: be clear not just the democrats take liberties. >> it is great to see you. the amateur. think you. >> guy you better off than you were four years ago? wall street legend joins me next.

obama's turns to godfather to raise big money for the campaign. is this a sign of trouble for this and ticket? stations in ticket so... [ gasps ]

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you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. lou: a new report shows our economy has lost the competitive edge sliding down the most competitive list and mr. lire joins us

how we can get that back also to tell us if we are better off now than four years ago. today the stocks ended mixed s&p down one point* five and nasdaq down six. investors are concerned the global economy is slowing sightseeing a slowdown in economic news tonight productivity rises 2.2% of from initial estimate of 1.6%. rising productivity mickey and slow job creation of they choose not to add good news for facebook. hang on. the stock is up almost 5%

mark zuckerberg is doing great fouling not to sell your shares from least one year. new report says the united states is losing its competitive edge according to a new study the misstates ranks seventh with the fourth consecutive drop for america. with more on how they can regain its competitive edge we have author of the book the true gold standard. when the issue is complex we turned to mr. levin. how best do we judge we are better off a four years ago?

not just our wallets and incumbent go deeper. what do see for the future? back competitiveness. the world economic forum study resonate with you? number one. the educational system math math, science, computer sciences at ranked 24th proposal or high-school list and colleges even like m.i.t. among others are not training the kids in math, science, computer science. even the old economy is being completely renovated. lou: rear watching clumsiness to deal with the answer to that question. >> we are not better off

despite what obama is saying. the unemployment rate was 7.8% and today is 8.3%. the average income was around $50,000. today with real income is about 45,000. 10 percent drop of disposable purchasing power. that is not better off but bad news. lou: that decline has been significant and to put into context over the last 30 years wages have been stagnant. we have not been dealing with public policy on either side.

what do see ahead? and what to encourage the winner to follow in order to return to prosperity? >> many have been sponsored in the program but one unconventional factor has not been focused on proposed four economy gave rise to the most rapid increase a workforce as well as per capita income. you can see the highest correlation was low-cost energy. america produced low-cost oil, guest, and nuclear power last issued 1970. so the high-cost energy of the democratic party has in

fact, led to the per-capita and come as well as the decline of the work force measured by the third year declined. lou: it sounds like this sell judd to suggest those that could be better given where we have been. certainly public education, energy cost, education of the work force. we have so much to do, but have heard so little. deal expect that to change? >> with from the right and? absolutely. opening the continental 48 and offshore drilling and alaska with coal resources and nuclear power is a

likelihood. that leads to greater participation would is that the 30-year low. lou: thank you for being here. is his argument to obama following his blueprint from success? is that believe it -- believable? and special counsel for clinton joins us from charlotte. next.

>> we will here from clinton tonight. we will get a great rendition of how things were in the 1990's.

[laughter] but not over the last four years. >> paul ryan launching a pre-emptive mr. at -- produce strike for the convention tonight. joining us live is the man who served in the white house special counsel to clinton, lanny, good to see you. if we start arguing and yelling, do not be at discomfort did it is just what we do. good to see you. >> we will not do that to nine. [laughter] lou: let me say this is a striking moment to think of clinton as the best

extemporaneously eaker i have ever heard that is not extend to his policies, most of them but there is a chance the savior of obama, are you kidding me? >> no doubt or hiding the fact there was bad blood in 2008 toward obama about what was said senator clinton and the president. and the bill clinton can always depersonalize this politics that is why he was so gracious about mitt romney to describe in as a good businessman and that he did a good job at bain capital.

he can say the deal is a wrong but the man is a good man. lou: but president clinton and respective of ideology is of intellectual integrity id have trouble squaring that up with the man running for president who has deficits, the greatest debt of his time in office by extraordinary geometric numbers i cannot imagine raising taxes in the '90s he balanced the budget this we are awash of phony bologna

amilya antonetti. >> there are some issues and the country is not better off than they were four years ago but clinton well the '04 obama's based on the issues. he does agree with the idea is on national health care definitely not cutting taxes on the wealthy and dealing with the of the structure problems only through government all other -- with tolerance. he believes in smaller government. lou: and welfare reform listening from hhs and the white house with the work requirement. that this could be a

substitute that is involved with the passage. how could clinton square up with obama's, welfare reform and what he has done along with the budget reconciliation -- reconcilia tion act of 1993? that looks like a calamity. >> clinton is responsible for that work requirement. one of the many ways he reformed and still left a social safety net. i don't have my arms around the facts and i should. the white house argues it did not take away the work requirement but allowing more flexibility. sorry, i did not know the facts.

lou: you were candid with what you do and what you don't. lanny davis. thank you. why did the federal court block of voter i.d. lot in texas? they are appealing to the supreme court and the texas attorney general at it is here next. >> unfortunately that, it was reported by a conservative newspaper not surprising. lou: misquote? is chairwoman denied calling the g.o.p. dangerous to israel. but she denies a lot of stuff. lucky for her we have her comments on tape. we will help her out to free

your listening pleasure. the first day of the convention and a video that claims we the people belong to our government. >> that is the only thing we all belong to. >> they never to promises to be just as good will the big dog deliver? want to try to crack it? yeah, that's the way to do it!

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the original judge that blocked the arizona law to block the show me your papers argument leads to racial profiling the original judge agrees with the supreme court to uphold the provision in her ruling. the justice department dropped against america account t sheriff by bringing public corruption charges against him. there was no evidence of wrongdoing bayer dropped a federal judge has yet to rule on a simple trial brought by a latino plaintiffs who accused the office of racial profiling. the suit that was just dropped was politically

charged and it took them two years. the justice department did approve the new hampshire brodeur ideal laws they are required. saying it is more restrictive than texas. the main difference is it allows the voters to be photographed then sign the affidavit their legal voters. last week they ruled they need a 12 votes and now the decision is being appealed to the u.s. supreme court drew me tonight is attorney general of it. your reaction? first by the decision of the justice department to permit with their boater ideologue? >> it shows the problem on a

national level. there seems to be one set of laws for some states with the united states constitution all should have equal protection. it seems like texas is being treated differently where voters can cast a provisional ball it. if they don't have their identification they can cast the ballot and approve the diddy later. said this in the texas law if you don't have one you can cast the ballot then produce it later. why do they allow for new hampshire but not texas does not make sense. lou: the reason there is a difference with the justice

department because of the civil-rights history with the requirement they must have the approval of the justice department but that does not apply. but the burden of the photograph is placed on the like toro system rather than the individual. >> you sound like a good lawyer. that is the reason why we appeal the decision to the u.s. supreme court. it has already approved the constitutionality of the voter i.d. law. that is why hampshire can implement. texas cannot because of section v preapproved requirement and it is being

singled out on that basis basis, we will challenge whether that prohibition is constitutional or unconstitutional. lou: there will be a lot of lot to choose from. we also find out including the secretary of state talking about voter id laws across the country that have demonstrated in the akamai georgia, is a higher turnout of minority voters. how does that square up? >> that is the irony. the complainers are few in

number. typically about 70% are in favor they say it will suppress racial minorities. it is hypothetical. the truth is those states implementing the of voter id laws participation has increased. talk about indiana and georgia it is a false argument to say this will slip -- suppress the vote of the minority. lou: always good to talk with you. let's talk again soon. >> thank you. lou: the nose of the dnc chair did you wasserman schulz is growing, growing, stopped and her tracks for putting words in the mouth of the irritation israeli ambassador to the united

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lou: chicago mayor rahm emanuel levying the obama campaign to meet with the super pac backing the president now fundraising for priorities usa that has raised 35 million about one-third raised by the mitt romney super pac and they are governed by fewer rules and can raise more money. who knew he ever allowed rules to impede him? debbie wasserman schultz has been caught on national television saying anything other than the truth.

she was lying. same republican criticism is dangerous for israel. but last 95 accused "the examiner" of misquoting her. >> i did not say that. unfortunately that was reported by a conservative newspaper not surprising they would deliberately misquoted me. >> and faced with that denial was forced to release the tape and listen to her yourself. >> while the republicans -- there is. there are lots of things she

could do but denial is a difficult option. nickelodeon condemned it jason diggs after treating obscene comments about paul ryan's wife during the national convention. so disgusting they are not to repeatable and then nickelodeon was promoting the twitter nickelodeon was promoting the twitter page and now they issued a statement saying his comments did not reflect their rebellious and liberals manufacture the republicrepublic anwr on women? really? just minutes away to the democratic national convention. says it get better than fox business network? does the president have surprises in store?

the "a team" may have surprises of their own. the seed of the democratic national convention. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

lou: those chills run down in your back. joining me down -- to join me now is denied and author of the book outnumbered and fox news contributor judith miller and from charlotte

and, political strategist robert zimmerman. you are selling the deal we belong to the government? what are you thinking about? >> we have to work together to build on success. i saw chris christie brag about success with the gi bill of rights. paul ryan talked about education. lou: i thought the ideal was half of us do not work and half of us pay taxes and half of us do not. what is the message? >> i'd like the republican party, we can only build a greater society by investing infrastructure, education

and job opportunities for the new middle-class. lou: i like the old middleclass. [laughter] >> he demon knight -- demonizes taking care of yourself, epperson responsibility, . lou: he has spent away for so long. [laughter] >> not to federal overreach. >> so tell me what about the fda and abolish the epa? >> yes. lou: don't flush with the epa. start with debbie wasserman schultz she lives, the nine is it then she denies that she lied and is still on tape guilty as charged.

what in the world? this is the chair of the dnc >> a potential nominee remember the marathon man? if he did it at all. lou: is that your answer as the chair of the party and ally 34? -- life through her teeth? also i have a 50-inch vertical leap. [laughter] >> i admirer the commitment to truth. i know they talked about already and with medicare funding. lou: that would be you and your friends line for that 700 people out of medicare

for? robert. you do not remember this because you have been away and italy. [laughter] >> >> really wanted to ask about debbie wasserman schultz. >> she did not remember saying it. >> negative remember denying it. [laughter] >> to not think that everything you say is not being recorded? >> to be substantive and mitt romney talks about zero-based foreign-aid going at zero every year. >> that is not what he said. lou: what you talking about? >> he said we evaluate commitments of other

countries. lou: you will tell me what jerusalem to be the capital. explain how god and jerusalem suddenly appear after two-thirds of democrats said node jerusalem. note god. there is because they have spoke up the platform has been and light and. [laughter] there are enough so they can overcome the others? >> you should vote for democrats because foreign aid is the highest it has ever been. lou: catching up quickly is the muslim brotherhood. >> there is intelligence cooperation superb between israel and the united states. despite the fact that yahoo! and obama does not get along

very much to the credit of the nation's. >> that is why they we've moved the word 83 from the platform. -- god from the platform. we will be back tomorrow. lost but now found like jerusalem and a god. up next another interesting grade for the president. all energy development comes with some risk,

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